The price of ex-Brazil 65 percent iron sinter feed fines declined to $214/mt from $234/mt two days ago, CFR China conditions. In a period of two weeks, the decline has totaled $42/mt.
Despite the price drop, the premium of Brazilian 65 percent iron ore has increased over the period from 10.6 percent to 12.6 percent, when considering its iron units in relation to those of the Australian 62 percent iron ore. The premium, the highest in two months, reflects the strong demand for the high performance of the high-grade product in blast furnaces.
Sources mentioned that today’s iron ore price, the lowest in two months, reflects basically a market sentiment depressed by worsening demand and by perspectives for increasing availability of iron ore from Brazilian miners. The local giant miner Vale announced recently that it has already achieved a production pace of 335 million mt per year and expects to close 2021 with a production capacity of 343 million mt.
The price of the Brazilian blast furnace grade pellets, following a similar pattern, stands today at $282/mt, against $325/mt one month ago.
In the Brazilian domestic market, such prices are estimated at $179/mt for the ore and $245/mt for blast furnace grade pellets, ex-works, no taxes included.